LONDON ó In a reduction of the expected billion-dollar initial public offering NXP has priced its IPO offering of 34 million shares at between $18 and $21 each, to raise between $612 million and $714 million.
The shares, set to be traded on Nasdaq, represent about 14 percent of the total stock of the company and would be traded on Nasdaq. The price values the company at about $4.5 billion. The money is to be used to pay off some of the company's debt, the filing said.
The IPO was filed originally by an entity called Kaslion Acquisition, which has changed its name to NXP Semiconductor NV. Kaslion is the name of the vehicle created by the private equity consortium that acquired NXP from Philips in 2006. Kohlberg Kravis Roberts & Co., (KKR) led the consortium which acquired an 80.1 percent stake in NXP. Other investors included Silver Lake Partners, Bain Capital, Apax and AlpInvest Partners. Philips has retained its 19.8 percent stake in NXP.
Since then NXP has been loss making and has divested several units to reduce costs and refocus the company on high-performance analog and mixed-signal ICs. NXP completed the divestment of its cordless and VoIP terminal operations to DSP Group. In 2008, NXP's wireless operations from its former mobile and personal segment were contributed to a joint venture, ST-NXP Wireless.
Last year, NXP completed a strategic alliance with Virage Logic and obtained approximately 9.8 percent of Virage Logic's outstanding common stock. This transaction included the transfer of its CMOS intellectual property and development team in exchange for the rights to use Virage Logic's intellectual property and services. In 2010, NXP divested a major portion of its former home segment to Trident Microsystems Inc.
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